Consumer spending makes Zalando worth an extra thought

Consumer spending makes Zalando worth an extra thought

22 November 2022 from Carlsquare

The valuation of e-commerce stocks like Zalando has been under pressure. As shown in the chart below, Zalando’s valuation has been more than cut in half over the last year.

On the other hand, in September, US consumer spending grew by 0.6 per cent and exceeded analysts’ expectations, which were 0.4 per cent. October figures will be released on the 1st of December, and the expectation is a growth of 0.7 per cent. In Europe, the year-over-year consumer spending growth was negative in September but increased sequentially. Continued improved consumer spending would speak in favour of a strong Q4, including Christmas shopping, which in turn could give Zalando shares some speculative buying pressure.

Looking at the daily price chart for the Zalando share, one can see that Zalando attempted to break above the falling MA200 but failed. The next downside level is around MA20, currently at EUR 27.5.

Zalando, daily one-year share price chart (EUR)

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

In the weekly chart below, momentum is negative but improving, as visualized by MACD.

Zalando, weekly five-year share price chart (EUR)

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

The full name for abbreviations used in the previous text:
EMA 9: 9-day exponential moving average
Fibonacci: There are several Fibonacci lines used in technical analysis. Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers.
MA20: 20-day moving average
MA50: 50-day moving average
MA100: 100-day moving average
MA200: 200-day moving average
MACD: Moving average convergence divergence

Important notice

This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the trading products (securities) mentioned herein, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms. The base prospectus and final terms constitute the solely binding sales documents for the securities and are available under the product links. It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand. This information includes or relates to figures of past performance. Past performance is not a reliable indicator of future results.

03/02/2023 12:21:41

 

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